The Australian Competition and Consumer Commission has instituted legal proceedings against bicycle supplier Netti Atom alleging the company engaged in resale price maintenance in relation to the range of Scott branded bicycles it imports and distributes to retailers throughout Australia.
In its legal action, to be heard in the Federal Court in Melbourne today, the ACCC is seeking declarations that Netti Atom contravened section 48 of the Trade Practices Act and that Paul Feltis, Netti Atom’s national sales and purchasing manager and part-owner, was knowingly concerned in the alleged contraventions by the company.
The ACCC alleges that Netti contravened the act by attempting to induce retailers it supplies with Scott bikes not to advertise the bikes on their websites below the recommended retail price specified by the company.
The ACCC has also instituted proceedings against Feltis, claiming he was knowingly concerned in the alleged contraventions.
Graeme Samuel, ACCC chairman, said this is the first matter instituted by the commission in the Federal Court’s new “fast track list” that started in Victoria in May 2007 to streamline court procedures to reduce the time and cost of litigation.
The ACCC wants injunctions on both parties concerning future conduct, pecuniary penalties and costs and communication from Netti Atom to retailers and the cycling industry explaining the resale price maintenance.